Who is responsible for the debts of my business?
This depends on the structure of your business ownership. If you are the sole proprietor of the business or part of a general partnership, you and/or your partner are directly and personally liable for the debts of the business. If your business is in financial distress, this means that your creditors can seek your personal assets as repayment on the business’s debts. In limited partnerships, corporations, and LLCs you are typically protected from creditors going after your personal assets, and the assets of the business itself are the only way creditors can recover what they are owed.